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TMI Blog2023 (6) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... A. No. 88/Asr/2023 - - - Dated:- 26-5-2023 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : Sh. Hardeep Aggarwal, CA For the Respondent : Sh. Vedanshu Tripathi, Sr. DR ORDER PER : ANIKESH BANERJEE, JM: The instant appeal of the assessee was filed against the order of the ld. Commissioner of Income Tax (Appeals) -5, Ludhiana, [in brevity the CIT (A) ] order passed u/s 250 (6) of the Income Tax Act 1961, [in brevity the Act ] for A.Y. 2016-17. The impugned order was emanated from the order of ld. Income Tax Officer, Ward-1(1), Jammu [in brevity AO ] order passed u/s 271B of the Act. 2. Brief fact of the case is that the penalty was levied u/s 271B for delay fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the fact that the assessee did not submit the audit report within the specified date in the prescribed form duly signed and verified by the accountant as provided u/s 44AB of the Income Tax Act, 1961. During the appellate proceedings, the AR submitted that the assessee company filed its Audit Report for AY 2016-17 on 22.03.2018 which was beyond the due date as it went into litigation with one of its major clients namely M/s. Simula Infra Pvt. Ltd. The AR further submitted that the assessee company had submitted his books of accounts to the Auditor and the audit was completed well before the due date i.e. 30.09.2016 but the assessee company erred in filing the tax audit report belatedly on 22.03.2018 because of the distraction created ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e documents available in the record. The assessee completed the tax audit within the due date. But the assessee filed the tax audit report before the authority with a delay which is contravening of section 44AB of the Act. The assessee filed a proper reason for delay in filing tax audit report. In factual matrix the assessee was suffering a financial exigency with legal battel. In our consider view, this is a sufficient reason for delay in filing the tax audit report before the authority which follow the Section 273B of the Act. Accordingly, the penalty u/s 271B amount of Rs. 81,843/- is quashed. 6. In the result, the appeal of the assessee bearing ITA No. 88/Asr/2023 is allowed. Order pronounced in the open court on 26.05.2023 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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